Older retirees spend half as much as younger ones

Income spending among retirees aged over 75 declines by half compared to those aged 50-65, according to research by Aegon.

Households of 50-65s spend £463 a week while 65-75 year olds spend £373. This weekly spend declines further to £241 for those aged 75 and over.

The report also finds that weekly retirement income declines by 6% from £556 to £521 between 50-65 and over 75.

Further findings:

younger retirees who travel more regularly spend around £80 per week, compared to £24 by over 75s

recreational costs are higher among 50-65s who spend £73 per week, compared to £32 by over 75s.

Steven Cameron, pensions director at Aegon, said:

“People now have so much choice over how and when they access their retirement savings but this freedom creates greater complexity as to how they should spread their income.

“Over time we expect to see people increasingly drawing a larger income in early retirement to reflect their active lifestyles, while at the same time ensuring they have enough money set aside to cover any big costs in later life like care costs.”